Thank you readers! Here are the key highlights from today's session
- Sensex & Nifty Continue To Close At Record Highs; Midcap Underperforms
- Midcap Index Slips From 35-month High To Close In The Red
- HDFC Bank Helps Nifty Bank Close In The Green, Lifts By 220 Points
- Nifty Gains 58 Points To 13,741 & Sensex 224 Points To 46,890
- Nifty Bank Gains 149 Points To 30,847 While Midcap Index Slips 57 Points To 20,849
- Divi’s Lab Top Nifty Gainer With Company’s Market Cap Crossing Rs 1 Lakh Crore
- HDFC, Bajaj Fin, Kotak Bank Hit 52-week Highs
- Burger King Reverses Its Gains To Close At Lower Circuit
- BEML, Hind Copper, ITD Cementation, Thermax & Just Dial Top Midcap Gainers
- Mazagon Dock, SAIL, IFB Industries, IPCA Labs Amongst Top Midcap Losers
- Market Breadth Favours Declines; Advance-Decline Ratio At 3:4
Closing Bell: Sensex, Nifty end at record close; HDFC twins, RIL contribute the most
Indian indices ended at record close on Thursday led by gains in heavyweights HDFC twins, TCS and Reliance Industries. The sentiment was further lifted tracking broader Asian markets, which perched near record highs on optimism over a US stimulus package and the Federal Reserve’s promise to keep interest rates low. The Sensex ended 224 points higher at its new closing high of 46,890 while Nifty rose 58 points to settle at its record close of 13,741. In intra-day deals, Sensex rose as much as 326 points to its all-time high of 46,992 while the Nifty hit its record high of 13,773, up 90 points.
However, broader markets underperfoemd benchmarks with the midcap indec down 0.3 percent and smallcap index up 0.1 percent. On the Nifty50 index, Divi's Labs, HDFC, Bajaj Finnace, HDFC Bank and IndusInd Bank were the top gainers while Hindalco, Coal India, Maruti, Adani Ports, and Tata Steel led the losses. Among sectors, the Nifty Bank and Nifty Fin Services rose 0.5 percent and 1.2 percent, respectively while the pharma index was also up 0.4 percent. However, Nifty Metal lost over 1.3 percent and Nifty FMCG and Nifty IT were also in the red for the day.
IndusInd Bank promoters seek SEBI extension on warrant subscription
IndusInd Bank stock is in focus as the promoters have sought another extension for its promoters to infuse residual capital in lieu of conversion of warrants, issued to them last year, worth over Rs 2,695 crore into equity. IndusInd has paid about Rs 674 crore for 25 percent of the warrants that they subscribed. Therefore, the balance 75 percent needs to be paid at a conversion price of about Rs 1,709 per share. IndusInd Bank had issued convertible warrants to its promoters IndusInd International Holdings ltd (IIHL) and its subsidiary IndusInd Ltd (IL) on July 6, 2019, under the composite scheme of arrangement for a total amount of Rs 2,695.26 crore for 1,57,70,985 share warrants.
Oil prices climb to nine-month high after inventory draw
Oil climbed to a nine-month high on Thursday after government data showed a fall in U.S. crude stockpiles last week, while progress towards a U.S. fiscal stimulus deal and strong Asian demand also buoyed prices. The U.S. dollar also set a 2-1/2-year low against major rivals on Thursday. Oil prices generally rise when the dollar falls because crude priced in the greenback becomes cheaper for buyers holding other currencies. Brent crude futures rose 72 cents, or 1.4 percent, to $51.80 a barrel at 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 71 cents, or 1.5 percent, to $48.53 a barrel. Both benchmarks hit their highest since early March.
Stock Update: Burger King's shares turned upside-down after it slipped 10 percent to Rs 175 per share on the NSE, due to profit-booking. The shares in the morning trade hit an upper circuit of 10 percent. However, it climbed about 265 percent from the issue price including today's rally.
Market Watch: Yash Gupta Equity Research Associate, Angel Broking
"We recommend booking profit in IRCTC OFS. Retail investors get shares at a cut-off price or bid price whichever is higher on Wednesday in their Demat account. Total OFS size was 20 percent of paid-up share capital with a cut-off price of Rs 1,377.55. After the OFS, promoter holding is at 67.4 percent and public holding at 32.6 percent. After the OFS, free float in the stock has increased significantly as 20 percent of paid-up share capital has been offloaded in the market. We recommend short-term investors to book a profit of 4.5 percent at the current market price of Rs 1,433 and long-term investors can hold the stock as we remain positive on the long-term prospects of the company, given the monopolistic nature of the business and strong growth expected post FY2021."
Direct tax collections slip 25% on YoY basis at Rs 4.95 lakh crore
The net direct tax collections – even after receiving the third installment of advance tax collections – look very dismal, according to sources. The net direct tax collection between April until December 16 are down by 25 percent at Rs 4.95 lakh crore. Last year, during the same period the collection was around Rs 6.80 lakh crore. However, sources say that these figures are set to get revised for this year because the final collection number will get reflected only by end of December 17. Watch video for more details.
Next 1-2 decades will see strong growth due to low penetration, says HDFC's Keki Mistry
India remains underpenetrated in terms of financial services, said HDFC’s Keki Mistry on Thursday, while adding that the next one-two decades will see strong growth due to low penetration. “Whether it is mortgages, whether it is credit cards, whether it is car loans, whether it is any financial service product. In my view, for the next one-two decades, you will see a strong growth because of the low penetration level,” Mistry said. Housing has become more affordable, said the vice-chairman and CEO of HDFC. More here
2021 watchlist: Top 10 largecap stocks Motilal Oswal suggests for the coming year
Bull run continues in newly listed Burger King, registers whopping 3x rally from issue price
Retail investors who did not receive the allotment in Burger King's IPO or didn't even subscribe to the newly listed company have missed one of the greatest investment opportunities this year. The stock is again locked in an upper circuit, of 10 percent today at Rs 213.80 per share on the NSE. The stock has climbed about 265 percent from the issue price including today's rally. The company has witnessed a dream run at the exchanges with a spectacular response from the Street. The stock's listing performance has been the best one witnessed by any company since 2017. Moreover, it has quadrupled investors' money at a time where the economy is still recovering from the distress that occurred by COVID-19 this year. More here
Dollar index will continue depreciating next year: TD Securities
The US dollar fell to two-year lows on Thursday as the hope of a fiscal stimulus grows in the Unites States. Crude prices also, in turn, are at their highest since March. “We do think dollar will continue to depreciate,” said Mitul Kotecha, Senior Emerging Markets Strategist, TD Securities in an interview with CNBC-TV18. He believes dollar has been under severe pressure in the last several months. “It will fall below 90. We do think in the near-term there is a risk of a dollar bounce possibly into the first quarter. The sentiment is already very weak, the consensus is very negative,” he said. More here
Fitch revises outlook on Motherson Sumi to stable
Fitch Ratings has revised their outlook on Motherson Sumi to stable from negative. According to Fitch, there is a stronger profitability relative to what they were expecting earlier. Effective execution of cost cutting, turnaround of new plants after large losses in FY20, stronger H1 to support the higher than expected FY21 profitability are also some of the reasons for the revision in outlook. In the special segment ‘What’s Afoot’, CNBC-TV18’s Sonia Shenoy gets more details